Modine reported a sharp jump in fourth-quarter sales and profit, capping a fiscal 2026 that set records for revenue, adjusted EBITDA and adjusted earnings per share.
For the quarter ended March 31, net sales rose to $954.4 million from $647.2 million a year earlier, up $307.2 million, or 47%. Net earnings increased to $73.6 million from $50.1 million, a gain of $23.5 million, or 47%. Earnings per share climbed to $1.36 from $0.92, up 48%.
Adjusted EBITDA reached a quarterly record of $146.1 million, up $42.0 million, or 40%, from $104.1 million. Adjusted earnings per share rose to $1.71 from $1.12, a 53% increase.
Gross profit in the quarter increased 29% to $214.7 million, while gross margin fell 320 basis points to 22.5%. Selling, general and administrative expenses rose 25% to $101.7 million. Operating income increased 39% to $103.9 million from $74.5 million.
By segment, Climate Solutions posted sales of $665.9 million, up 87% from $356.3 million. Data center sales increased 158%, and HVAC technologies sales rose 51%, including $38.2 million from acquired businesses. Segment operating income climbed 77% to $108.8 million, and adjusted EBITDA rose 63% to $124.3 million. Gross margin for the segment declined 510 basis points to 24.6%.
Performance Technologies recorded sales of $294.0 million, down slightly from $294.8 million. Operating income fell 7% to $27.7 million, adjusted EBITDA dropped 15% to $37.4 million, and gross margin decreased 390 basis points to 16.5%.
For the full fiscal year, net sales rose to $3.181 billion from $2.584 billion, an increase of $597.6 million, or 23%. Adjusted EBITDA increased to $471.0 million from $392.1 million, up $78.9 million, or 20%. Adjusted earnings per share improved to $5.02 from $4.05, up 24%.
Net earnings for the year fell to $123.3 million from $185.5 million, down $62.2 million, or 34%, and earnings per share declined to $2.26 from $3.42. Gross margin slipped to 23.0% from 24.9%.
Operating cash flow for fiscal 2026 was $248.7 million, up $35.4 million from the prior year. Free cash flow fell to $105.4 million from $129.3 million, a decline of $23.9 million. Total debt was $436.3 million at year-end, while cash and cash equivalents were $73.5 million, leaving net debt at $362.8 million, up $83.6 million from fiscal 2025.
For fiscal 2027, Modine is guiding to net sales growth of 20% to 35% and adjusted EBITDA of $650 million to $680 million, which would represent growth of 38% to 44% versus fiscal 2026. Today the company's shares have moved -2.81% to a price of $250.11. If you want to know more, read the company's complete 8-K report here.
